H&N Publications INTERNATIONAL

Volume 1, Issue I, Page 39-48

Research Article

Conventional and Islamic Banks in Bangladesh: A Comparative Financial Performance Analysis

Md. Abu Sufian
Md. Abu Sufian

MSS in Economics, Rajshahi University, Bangladesh.

and Fatema Tuj Johara*
Fatema Tuj Johara*

M.phil. in Sociology, Jagannath University, Bangladesh. Email: [email protected]


Received: 27 March, 2021 || Accepted: 29 April, 2021 || Published: 30 April, 2021

Article info

Received: 27 March, 2021

Accepted: 29 April, 2021

Published: 30 April, 2021

Available in online: 05 May, 2021

 

*Corresponding author:

[email protected]

Abstract

The main purpose of the study is to investigate the comparative financial performance of Islamic and conventional banks of Bangladesh. To do this, the study considered different performance measuring financial ratios namely profitability, liquidity, risk and solvency, capital adequacy, deployment and operational efficiency and used independent sample t-test and ANOVA to determine the significance of mean differences of these ratios between and among banks. A five years’ data set of five Islamic and conventional banks for the period of 2009 to 2013 used for the analysis. The study found that Islamic banks more liquid, less risky and operationally efficient than conventional banks of Bangladesh. Finally, study expected that the findings will facilitates the bank managers, depositors, investors, shareholders and regulators for future decision of concern stakeholders by providing true picture of financial position of Conventional and Islamic banks in Bangladesh.

Keywords: Islamic banks, conventional banks, performance, Bangladesh.

References

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This work is licensed under a Creative Commons Attribution 4.0 International License.


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